CEOs from prominent UK betting firms have called on Treasury head John Healey to dismiss proposed increases in gambling duty taxes as the new Budget approaches on October 28. These leaders have voiced concerns that rising taxes could lead to more betting shop closures and larger job losses nationwide.
In a communication to Healey facilitated by the Betting and Gaming Council (BGC), the executives have registered their strong opposition to a planned jump in the Machine Games Duty (MGD) from 20% to 40%. They have also requested a pause on the increase in General Betting Duty (GBD) tax slated for April 2027, emphasizing that any future tax hikes should consider the impact of previous increases.
The letter, which garnered signatures from leaders at notable companies such as Entain, bet365, Bally’s Corporation, Evoke, Betfred, and Flutter UK & Ireland, outlines the industry's precarious state. The BGC reports that over 600 betting outlets have closed, resulting in the loss of more than 10,250 jobs across the country or potential layoffs announced by major firms including Betfred, William Hill, Entain, bet365, and Paddy Power.
Data from the UK Gambling Commission indicates that the number of betting shops in Great Britain has decreased by 38%. The BGC warns that the financial consequences could lead to a loss of up to £124 million (€146.8 million) for the Treasury. Furthermore, British horseracing may see reductions of at least £40 million (€47.3 million) in revenue from lower levy and media-rights payments.
Additionally, a study by Regulus Partners suggests that increasing the MGD to 40% could result in annual losses of £92 million (€108.8 million) for the horseracing sector. The industry's appeal for tax reassessment arises as operators await the implications of the upcoming government Budget and its potential effects on the UK betting and gaming landscape.
